Wondering how real estate broker sponsorship works with property management? This service is included with your sponsorship!
What is a Trust Account?
A trust account is an account in which a company will act as a custodian and hold funds for a specific purpose. The best way to describe the purpose of the trust account is that it is an account established to hold the money of other people or companies. Please note that TREC requires the broker to manage all trust accounts.
How We Can Help
Our responsibility as the broker is not only to sponsor your license; we are also required to maintain the trust account with which you receive all trust monies for your property management duties. This includes:
- Safety Deposit
- Pet Deposits
Since this is a recurring service, the standard $15 per transaction fee does not apply. The lease would have the transaction fee, but there is an additional fee of $5 per property per month that is deducted from the trust account in the form of a service fee. This fee covers the following services:
- E & O Insurance — extra coverage for property management
- Landlord distributions — ACH
- Operation of the trust funds
- Record keeping
What You Need
You will need your own operations account for any expenses incurred for your property management services like maintenance and service fees. We recommend this remain separate from your personal account for accounting purposes.
Your commission income will not be the same as the other sponsored agents where they have two pay periods and two times a month they receive their commissions. Instead, your income from your property management fees is direct-deposited by the 10th of every month. This is the same time landlord distributions are sent out.
You are still the primary contact with your properties and you will be responsible for performing all of the property management duties. Our duties only extend to the four services listed above. Please note that If you are wanting MLS access, you are required to join the board of Realtors that we are members of.
Let’s Get Started!
Broker sponsorship starts at $199 for the first 3 months and then $99 per month afterward. Remember, performing property management services does not limit you to just those types of revenues sources. If you are still wanting to do your apartment locating job or residential sales and leasing, you are free to do that in addition to property management at no additional cost. Contact Spirit Real Estate Group to get the process started!